Saturday, October 04, 2008

Bill Clinton and Fannie Mae

Almost prophetic! I came across this article by Steven Holmes in the New York Times via a link in Dennis Prager’s blog.

The article was written nine years ago and warns that Democratic President Bill Clinton’s move to pressure Fannie Mae to make subprime loans could lead to an eventual government bailout.
Excerpts appear below (emphasis mine).

Fannie Mae, the nations biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.

In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers.

In moving, even tenatively, into this new area of lending, Fannie Mae is taking on significantly more risk...

If they fail, the government will have to step up and bail them out on the way it stepped up and bailed out the thrift industry.

2 comments:

Kevin said...

Whoa whoa whoa... but Nancy Pelosi told me it was George Bush and the Republicans responsible for this mess. Why would the leader of the most ethical congress in history lie?

Alcamadus said...

And I wonder why the media hasn't been smearing this all over headline news that the Democrats are directly responsible and wouldn't listen when Republicans acted against this legislation. Hmmm. Bias much?

SNL actually nailed the Democrats pretty hard about this very issue last night, I was really happy to see them actually step up and take them down.